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Can games maker Rovio Entertainment succeed with the 'Angry Birds' movie?

'Angry,' an animated film based on the successful app, is now in theaters.

Rovio Animation/Sony Pictures/AP

'Angry Birds' stars Jason Sudeikis (r.) and Josh Gad (l.).

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May 22, 2016

By Tuomas ForsellReuters

Jussi RosendahlReuters

Finnish smartphone games maker Rovio Entertainment Ltd is hoping to revive the cool of its widely-known but aging Angry Birds franchise with an animated 3D Hollywood film financed out of its own pocket.

The original Angry Birds, launched in 2009, remains the top paid mobile app of all time. But its creator's fortunes have dwindled after it failed to create new hit games; last year Rovio cut a third of its staff, hived off non-core businesses, and booked a nearly $15 million annual loss.

Now the company is pinning its hopes on "The Angry Birds Movie."

"The whole (movie) project will have a positive impact on all of our business operations," Rovio CEO Kati Levoranta told Reuters, adding that the company was expecting to return to profits this year.

"It's a question of risk and reward, but it's also about creative control," Mikael Hed, executive producer and chairman of wholly owned subsidiary Rovio Animation co, told Reuters. "The one who pays the bill gets to decide what's in the movie."

The movie expands on the origin story of what made the birds so angry – that green pigs had stolen the birds' eggs. The characters may have a fresh look, but for its legions of fans, it has plenty of references to the original game where players use a slingshot to fire angry bird bombs at the pigs.

The movie was directed by veteran animators Clay Kaytis and Fergal Reilly, known for their work with Disney and Sony Pictures, respectively. The voice-over cast features Sean Penn and "Game of Thrones" star Peter Dinklage.

Rovio launched a movie-based Angry Birds Action! game sequel in April and has signed up promotional deals with the likes of McDonald's and Hennes & Mauritz.

Sony Pictures is handling the movie's marketing and distribution.

"The challenge for the movie will be to see how loyal those original fans are and whether the movie can bring in new fans to both the movie, and then back to the games," said analyst Jack Kent from research firm IHS Technology.

Ultimately, however, Rovio must find new hit concepts.

"I think Rovio needs to look at alternate properties in order to secure its future," said Steve Bailey, another IHS analyst. "The company can't depend on Angry Birds for much longer."

While many companies have created games out of movies, the reverse approach is less common, outside of a handful of examples like the "Lara Croft: Tomb Raider" franchise last decade.